Investment In African Tech Startups Up Nearly 50%

After a challenging period, investment is returning to African tech startups .

According to the latest report by Disrupt Africa, 178 tech startups in Africa secured $1.64 billion in funding in 2025, marking a 46.2% increase compared to 2024. This rise follows a two-year decline in investment, although it does not reach the record levels of previous years.

In 2025, 178 African startups raised capital, with investment amounts per company increasing. Investors displayed caution, preferring to make larger investments in fewer companies, suggesting confidence in these startups' long-term potential.

The number of active investors decreased to 330 in 2025, a smaller decline than in previous years. This suggests a stabilization in investor interest, following a significant drop in 2023 when numbers halved from nearly 1,000 in 2022.

The primary recipients of funding were Nigeria, Egypt, Kenya, and South Africa, which accounted for nearly 90% of all startup funding in 2025. Nigeria received the largest share, while Egypt had the highest number of funded startups. Other countries like Ghana and Morocco also experienced notable investment.

Fintech remained the most attractive sector, with over 50 startups securing close to $700 million, representing 25% of all equity funding. Other sectors such as cleantech, healthtech, energy, and mobility are also gaining traction, with some surpassing $200 million in funding for the first time in years.

The year 2025 marked a potential turning point for African startups, with increased funding and diversification across sectors. This shift suggests a more resilient ecosystem, poised for further growth in the coming years.

Based on reporting by techround.co.uk.